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It pays to be a tech investor with a solid system for crushing the market.
In fact, I just watched such a system pay off 265% for some of my paid-up members in a little less than a year.
Let me show you what I mean…
The system I'm talking about are the five rules for finding the best tech stocks – before they take off. These five filters – which you can find in Your Tech Wealth Blueprint – make it much easier to spot the winners from the losers.
Take the case of the Silicon Valley leader I recommended to readers of my Nova-X Report on Feb. 26, 2016. At the time, this company was largely out of favor on Wall Street.
But just five days after my initial rec, this company broke out on heavy volume. It would go on to become the top-gaining tech stock of 2016.
Today, let's walk through the process we used to select this chip leader that crushed the market by 24-fold.
And if you're thinking of checking out now because this is "old news"… don't.
This isn't just a history lesson.
Now then, I did have a bit of an "unfair" advantage here over Wall Street. I'm a Silicon Valley insider who served as a senior advisor to a dozen tech startups.
And I knew this company well from both investment and technology perspectives.
That allowed me to see that the graphics processing units (GPUs) from NVIDIA Inc. (Nasdaq: NVDA) could quickly be extended well beyond the firm's original focus on video games.
In my gut, I knew that those powerful processors could be tweaked to address the high-bandwidth needs of virtual reality (VR) and artificial intelligence (AI) – two tech sectors that are now on fire.
While I trust my gut, I don't allow it or my emotions to lead me astray. That's why we always run stocks through our five-part system.
Let's a look at how NVIDIA stacked up…
Rule No. 1: Great Companies Have Great Operations
We always look for well-run firms with top-notch leaders.
Jen-Hsun Huang, cofounder and CEO at NVIDIA, is a rare breed in Silicon Valley. He's an engineer by training who, since 1993, has built his firm from a startup into a $56.4 billion market-cap powerhouse.
These are founder-CEOs who defied the odds by staying in charge instead of being replaced by professional managers as their firms became global icons.
A native of Taiwan, Huang was named to the U.S. Immigrant Entrepreneur Hall of Fame when it was established in 2012. He's also received the Dr. Morris Chang Exemplary Leadership Award from the Global Semiconductor Association as well as the Daniel J. Epstein Engineering Management Award from the University of Southern C…
About the Author
Michael A. Robinson is one of the top financial analysts working today. His book "Overdrawn: The Bailout of American Savings" was a prescient look at the anatomy of the nation's S&L crisis, long before the word "bailout" became part of our daily lexicon. He's a Pulitzer Prize-nominated writer and reporter, lauded by the Columbia Journalism Review for his aggressive style. His 30-year track record as a leading tech analyst has garnered him rave reviews, too. Today he is the editor of the monthly tech investing newsletter Nova-X Report as well as Radical Technology Profits, where he covers truly radical technologies – ones that have the power to sweep across the globe and change the very fabric of our lives – and profit opportunities they give rise to. He also explores "what's next" in the tech investing world at Strategic Tech Investor.